You probably clicked on this article because you’re worried about the future of your GSA Schedule contract, or maybe you’re looking to get a contract soon but aren’t sure if you should. We know the last month or so has been full of changes within the federal government, and you may have heard about contract terminations and federal workforce cuts. These things can’t be completely avoided, but what we need to focus on is the fact that the government is still and will always be buying. Priorities and spending habits will change, but the government can’t source the pens to sign those Executive Orders (EOs) from just anywhere. There are rules and regulations in place before agencies can acquire essential goods and services.
Let’s talk about the General Services Administration (GSA), more specifically the Multiple Award Schedule (MAS) Program and why it’s a crucial tool for the federal government—and why it’s not going to disappear.
What is GSA?
First, let’s go back to the basics—the General Services Administration, or GSA, was established in 1949 by Harry Truman to streamline the acquisition process for the federal government. GSA is a self-funded agency, meaning it does not use taxpayer dollars to run its operations.
GSA has several critical functions in the federal government. Contractors may know GSA as only an acquisition arm, but GSA is much more than that. GSA is in charge of the following:
- Managing federal buildings and real estate through the Public Buildings Service
- Developing government policies and regulations (Federal Acquisition Regulation, Federal Register, GSAR/GSAM)
- Managing the Federal Acquisition Service (FAS) which includes the MAS Program
GSA’s Public Buildings Service
If you’ve been hearing a lot in the news about GSA selling its properties or cutting a percentage of the GSA PBS workforce, they’re talking about GSA’s Public Buildings Service. Through this branch, GSA acquires space through new construction and leasing as well as maintains preexisting federal properties nationwide. Some aspects of this program include:
- Promotes innovative workplace solutions
- Supports development of urban communities
- Provides space for child care centers
- Donates or sells underutilized real estate for federal agencies
- Commissions artwork for new federal buildings
- Conserves federally-owned artworks, the largest public collection in the country
- Supports sustainable design
- Preserves historic buildings
It’s important to note this branch of GSA is separate from the MAS Program. So, if you’re hearing about GSA looking to cut 63% of the PBS workforce, this does not mean the contracting arm of GSA which we’ll talk about more below.
MAS Program
The GSA Multiple Award Schedule (MAS) Program is a long-term contracting vehicle allowing commercial companies to sell their products and services to the government. Government buyers procure over $40 billion every year through this contract. The MAS Program is Indefinite Delivery, Indefinite Quantity (IDIQ) meaning there is no ceiling for buyers.
The MAS Program is accessible for all federal agencies, and state/local/educational/tribal entities can use it under certain circumstances such as the Cooperative Purchasing or Disaster Purchasing programs.
Why the Federal Govt Will Always Need the MAS Program
With all the changes under the new administration, there has been a lot of concern about the MAS Program disappearing. While we can anticipate some changes and cuts to the program and GSA overall, we know that this program is extremely valuable to the government and it’s not going anywhere. Why? Let us explain.
Right now, the GSA MAS Program is the most popular contract vehicle among federal buyers because it provides access to pre-vetted contractors. This means any vendor purchased from under this vehicle is abiding by all federal contracting compliance/regulations and has guaranteed best value offerings. The products/services listed in the MAS Program are also pre-negotiated rates, ensuring agencies are getting the best price available. All of these factors save an incredible amount of time in the acquisition process. No other acquisition system is as efficient.
GSA’s tools such as eBuy and Advantage also make it easy for buyers to find what they need whether it’s a Micro-Purchase, or if it requires market research and a solicitation.
Industrial Funding Fee (IFF)
As mentioned earlier, GSA is one of the few self-funded agencies in the federal government. GSA uses the Industrial Funding Fee (IFF), a percentage of contractor sales, to source funds. This has many benefits, especially during government shutdowns and times of economic uncertainty. It’s also a considerable advantage during the new Trump Administration, as they are looking to cut wasteful spending and reduce the budget.
The Department of Government Efficiency (DOGE) is actively looking to cut wherever they can. All of this to save taxpayer money as well as attempt to get our national debt under control. While some contract terminations or downsizing could occur within GSA, the MAS program remains a necessity by the new administration to acquire critical supplies and services both efficiently and relatively cheaply.
Agencies Are Still Actively Purchasing from the MAS Program
You may have seen recently that GSA has placed a $1 limit on all Government Purchase Cards (GPCs). If an agency needs to buy something, they will need to go through a review and approval process. This will inevitably slow down purchasing, but it doesn’t mean they can’t spend more than $1.
Additionally, SAM.gov and GSA eBuy, government tools for proposals and market research, are still releasing opportunities daily for contractors. If you want to learn more about active bids and awards, you can join our weekly email list.
Keeping Up with the New Administration
It’s understandably a bit overwhelming to keep up with all the changes in the new administration while also managing your contract. If you want to learn more about navigating this landscape, check out our blogs below:
- Top 10 Things Federal Contractors Should Do During a New Presidential Administration
- Key Executive Orders and their Implications for Federal Contractors
- How the New Trump Administration Could Impact the GSA Multiple Award Schedule (MAS) Program
If you need help maintaining your GSA Schedule or are interested in getting one, we would be happy to help you.
